Visa Expanding Into Tokenized RWAs Amid Legal Scrutiny

Sep. 25, 2024. 1 min. read.

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Visa, the global payment services leader, is venturing deeper into the digital asset space with the launch of its Tokenized Asset Platform, aimed at helping banks explore tokenized assets and smart contracts. Spain’s Banco Bilbao Vizcaya Argentaria (BBVA) is among the first to test this platform in a controlled environment, with a pilot program expected in 2025 on the Ethereum blockchain.

Visa’s move reflects its strategy to remain competitive in the face of growing legal and market challenges. The platform is designed to assist banks in working with fiat-backed tokens, providing them with a regulated path to participate in blockchain-driven capital markets.

“We think that [tokenization] creates a significant opportunity for banks to issue their own fiat-backed tokens on blockchains. Banks must do it in a regulated way and enable their customers to access and participate in these on-chain capital markets,” said Cuy Sheffield, Visa’s Head of Crypto.

Visa is not alone in its interest in tokenized real-world assets (RWAs). Major financial players like BlackRock and Franklin Templeton are also exploring the sector, which holds the promise of a more digitized financial future. The value of tokenized assets has already reached $12.36 billion, and some experts, like Chainlink’s Sergey Nazarov, believe RWAs will soon surpass cryptocurrencies in value.

However, Visa’s expansion comes as it faces mounting legal pressures. The U.S. Department of Justice (DOJ) recently accused Visa of illegally monopolizing the debit card market, driving up costs for consumers. Attorney General Merrick Garland stated, “Visa has unlawfully amassed the power to extract fees that far exceed what it could charge in a competitive market.”

Despite these challenges, Visa remains determined, calling the lawsuit meritless and pledging to defend itself.

Source: Visa Pushes Into Tokenized RWAs Despite Legal Scrutiny

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